According to this Financial Times article, the lesson from the financial crises of the last 8-10 years is that Central bankers must watch out for asset price bubbles and act quickly and judiciously. Central bankers in India are focusing on inflation and keeping it under check. That’s good discipline that has worked quite well in US and Europe.
It’s time for them to leapfrog their US and European counterparts and do something to control the asset price bubbles around the country, specifically in real estate and the stock market. For real estate, the best place to start would be at home — in Delhi itself, where the prices seem to have gone up a couple of hundred percent in the last year or so.